The capital markets regulator Sebi has given Delhivery permission to fund $7,460 crore through an initial public offering (IPO).

According to the draught red herring prospectus, the IPO will include a fresh issuance of equity shares totaling 5,000 crore and an offer for sale (OFS) component worth 2,460 crore from existing shareholders (DRHP).

Carlyle Group and SoftBank, as well as Delhivery’s co-founders, will divest their shares in the logistics company under the OFS.

According to an update with the regulator on Tuesday, the company, which submitted its preliminary IPO papers with Sebi in November, received its observations letter on January 13.

The issue of an observations letter denotes the Sebi‘s approval of the IPO.

According to the draught papers, CA Swift Investments, a Carlyle Group subsidiary, will sell shares worth 920 crores, SVF Doorbell (Cayman) Ltd, a Softbank Group subsidiary, will sell shares worth 750 crores, Deli CMF Pte Ltd, a wholly-owned subsidiary of private equity firm China Momentum Fund, L.P., will sell shares worth 400 crores, and Times Internet will sell shares worth 330 crores.

The co-founders of Delhivery, Kapil Bharati, Mohit Tandon, and Suraj Saharan, will also sell shares worth 14 crore, 40 crore, and 6 crore, respectively.

SoftBank currently owns 22.78 percent of the firm, while Carlyle owns 7.42 percent and China Momentum Fund owns 1.11 percent.